Faculty of Commerce, Law and Management (ETDs)

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Subject: search.filters.subject.Informal sector

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    The barriers to Adoption of a Cashless Economy in South African Informal Markets: consumers’ perspective
    (University of the Witwatersrand, Johannesburg, 2024) Gandamipfa, Lutendo Nndwakhulu; Magida, Ayanda
    This study aims to enhance the Unified Theory of Adoption and Use of Technology (UTAUT2) by integrating security and privacy concerns associated with cashless payments (CLP). The research investigates impediments to adopting cashless payments in the informal sector among South African consumers. Data was collected through an online survey administered to South African informal sector customers using a quantitative approach. Four hundred and seventeen participants contributed, yielding three hundred and twenty-five usable responses for testing the research hypotheses. Structural Equation Modelling (SEM) via Analysis of Moment Structures (AMOS) was applied for data analysis. The findings reveal that Perceived Trust (PT) and Perceived Risk (PR) exert the most significant influence on the adoption of cashless payments. Social Influence (SI) also demonstrates a statistically significant impact on this adoption. Conversely, Performance Expectancy (PE), Effort Expectancy (EE), Price Value (PV), and Habit (Ht) exhibit statistically insignificant associations with this adoption. To create a more comprehensive model for determining cashless payment adoption in the informal sector, the researchers modified UTAUT2 by incorporating consumers' perceived trust and risk. Notably, there is limited research on adopting cashless payments within the context of the informal sector. The research findings hold implications for policymakers, banks, and fintech companies, offering insights into the factors contributing to the sluggish adoption of CLPs in the informal sector. This understanding can guide the design of appropriate solutions to address consumer concerns regarding using CLPs in the informal sector, facilitating a successful transition towards a cashless economy
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    Digital payments adoption of informal small and medium enterprises in South Africa’s township economy
    (University of the Witwatersrand, Johannesburg, 2023) Mabaso, Nompilo; Magida, Ayanda
    The use of cash for making and receiving payments in South Africa’s townships continues to grow, despite the proliferation of alternative payment methods. Merchants operating informal businesses are reluctant to accept payments digitally, which further contributes to the socio-economic burdens experienced in townships. This study investigated merchants’ intention to use digital payment acceptance methods, specifically in the informal sector. The UTAUT2 was employed, extended with the Perceived Risk Theory. The study adopted a quantitative research approach. A questionnaire was used to collect data from 120 respondents online and face-to-face. The questionnaire was based on previously researched and theorised literature. Factor analysis, particularly Principal Components Analysis, was used to analyse the results. Correlation analysis was conducted to test the hypothesis, followed by multiple regression. The findings revealed that the independent variables Performance Expectancy, Effort Expectancy, Price Value and Perceived Trust all positively influenced the behavioural intention of informal merchants to use digital payment acceptance methods. Performance Expectancy had the strongest influence, whilst Perceived Risk was not found to have a negative influence on the behavioural intention of informal merchants to adopt
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    The effect of cultural and social responsibility on entrepreneurial resilience among immigrant entrepreneurs in Johannesburg
    (2023) Ntlakana, Anelisa
    Amidst the increasing amount of immigrant entrepreneurship studies, as well as the constantly growing number of immigrant entrepreneurs in South Africa and their potential impact on the South African socioeconomic , immigrant entrepreneurs' beliefs and practices of cultural and social responsibility, as well as how this affects their resilience, are still understudied. This research’s focus is on (i) the relationship between culture, social responsibility, and immigrant entrepreneurial resilience, (ii) how immigrant entrepreneurs interpret culture and social responsibility, and (iii) the impact of demographic factors on entrepreneurial resilience of immigrant entrepreneurs in the informal sector context in South Africa. Furthermore, in terms of resilience, this study investigated the impact of immigrant entrepreneurs' awareness of government assistance programs on their resilience. The study was quantitative, with 180 immigrant business owners working in the informal sector in Johannesburg being polled using accessible sample procedures. The findings show that both dimensions of social responsibility (philanthropy and ethic) had a significant relationship with entrepreneurial resilience, whereas, only one dimension of culture (ubuntu) had a significant relationship with entrepreneurial resilience, furthermore, the study also found that awareness of government support had a significant positive impact on entrepreneurial resilience of immigrant entrepreneurs in Johannesburg's informal sector. Theoretical contribution: This study contributes to the increasing literature on social responsibility and immigrant entrepreneurship by exploring social responsibility from the perspective of an informal immigrant entrepreneur. This study sheds light on how informal immigrant businesses view community social responsibility and how it has improved their resilience. Practical contribution: This research outlines activities in which informal immigrant business owners can engage and use to enhance their resilience in the informal sector, where they encounter challenges such as a lack of financial support. In addition, the research recommends that government agencies incorporate immigrant entrepreneurs into their strategic and operational frameworks. Entrepreneurs who are new to the Republic of South Africa are encouraged to look for government aid programs on their own.
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    What are the challenges in taxing the informal economy and possible ways to overcome them?
    (2021) Mbedu, Noluvuyo Bridgette
    Recent years have witnessed increased attention towards the challenges of taxing the informal economy (Joshi, Prichard & Heady 2012:1). However, this research report aimed to argue whether informal economy businesses in South Africa should be included in the tax system, given that the challenges of taxing the informal economy will need to be overcome. Other African countries such as Nigeria, Uganda, Cameroon and Ethiopia have attempted to tax the informal sector directly, and some businesses are bribing tax officers to reduce their company's tax payments. If the marginal bribe rate is lower than the statutory marginal tax rate, the company's tax payments will be reduced. (Kundt: 2017:6). Prichard (2012:16) has mentioned that the policy makers focus on the cost and benefits of taxing the informal economy. This research report also aimed to argue about the analysis that is needed to overcome the challenges of taxing the informal economy